[Federal Register Volume 68, Number 223 (Wednesday, November 19, 2003)]
[Rules and Regulations]
[Pages 65376-65379]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-28888]



[[Page 65375]]

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Part III





Department of Transportation





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Federal Aviation Administration



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14 CFR Parts 121, 135, and 145



Special Federal Aviation Regulation No. 36, Development of Major Repair 
Data; Direct Final Rule

  Federal Register / Vol. 68, No. 223 / Wednesday, November 19, 2003 / 
Rules and Regulations  

[[Page 65376]]


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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Parts 121, 135, and 145

[Docket No. FAA-2003-16527; Amendment No. SFAR 36-8]
RIN 2120-AI09


Special Federal Aviation Regulation No. 36, Development of Major 
Repair Data

AGENCY: Federal Aviation Administration, DOT.

ACTION: Direct final rule; request for comments.

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SUMMARY: The Federal Aviation Administration amends and extends Special 
Federal Aviation Regulation No. 36 (SFAR 36). This final rule extends 
the SFAR 36 expiration date five years. Also, in this final rule, the 
FAA makes a technical amendment to Section No. 4 (Application) of SFAR 
36. SFAR 36 allows holders of authorized repair station or aircraft 
operating certificates to approve aircraft products or articles for 
return to service after completing major repairs using self-developed 
repair data not directly approved by the FAA. Extension of the 
regulation continues to provide, for those who qualify, an alternative 
to gaining direct FAA approval of major repair data on a case-by-case 
basis. The technical amendment to Section No. 4 (Application) is 
necessary to accurately reflect the appropriate FAA office to which 
applications should be submitted.

DATES: This amendment becomes effective January 23, 2004. Comments for 
inclusion in the Rules Docket must be received on or before December 
19, 2003.

ADDRESSES: You may send comments [identified by Docket Number FAA-2003-
16527] using any of the following methods:

    [sbull] DOT Docket Web site: Go to http://dms.dot.gov and follow 
the instructions for sending your comments electronically.
    [sbull] Government-wide rulemaking Web site: Go to http://www.regulations.gov and follow the instructions for sending your 
comments electronically.
    [sbull] Mail: Docket Management Facility; U.S. Department of 
Transportation, 400 Seventh Street, SW., Nassif Building, Room PL-401, 
Washington, DC 20590-001.
    [sbull] Fax: 1-202-493-2251.
    [sbull] Hand Delivery: Room PL-401 on the plaza level of the Nassif 
Building, 400 Seventh Street, SW., Washington, DC, between 9 a.m. and 5 
p.m., Monday through Friday, except Federal holidays.
    For more information on the rulemaking process, see the 
SUPPLEMENTARY INFORMATION section of this document.
    Privacy: We will post all comments we receive, without change, to 
http://dms.dot.gov, including any personal information you provide. For 
more information, see the Privacy Act discussion in the SUPPLEMENTARY 
INFORMATION section of this document.
    Docket: To read background documents or comments received, go to 
http://dms.dot.gov at any time or to Room PL-401 on the plaza level of 
the Nassif Building, 400 Seventh Street, SW., Washington, DC, between 9 
a.m. and 5 p.m., Monday through Friday, except Federal holidays.

FOR FURTHER INFORMATION CONTACT: Ralph Meyer, Delegation and 
Airworthiness Programs Branch, Aircraft Engineering Division, AIR-140, 
Federal Aviation Administration, Mike Monroney Aeronautical Center, PO 
Box 25082, Oklahoma City, Oklahoma, 73125; telephone (405) 954-7072; 
facsimile (405) 954-4104, e-mail [email protected].

SUPPLEMENTARY INFORMATION:

Availability of Rulemaking Documents

    You can get an electronic copy using the Internet by:
    (1) Searching the Department of Transportation's electronic Docket 
Management System (DMS) Web page (http://dms.dot.gov/search);
    (2) Visiting the Office of Rulemaking's Web page at http://www.faa.gov/avr/arm/index.cfm; or
    (3) Accessing the Government Printing Office's Web page at http://www.access.gpo.gov/su_docs/aces/aces140.html.
    You can also get a copy by submitting a request to the Federal 
Aviation Administration, Office of Rulemaking, ARM-1, 800 Independence 
Avenue, SW., Washington, DC 20591, or by calling (202) 267-9680. Make 
sure to identify the docket number, notice number, or amendment number 
of this rulemaking.

Small Business Regulatory Enforcement Fairness Act

    The Small Business Regulatory Enforcement Fairness Act (SBREFA) of 
1996 requires FAA to comply with small entity requests for information 
or advice about compliance with statutes and regulations within its 
jurisdiction. Therefore, any small entity that has a question regarding 
this document may contact their local FAA official, or the person 
listed under FOR FURTHER INFORMATION CONTACT. You can find out more 
about SBRFA on the Internet at our site, http://www.gov/avr/arm/sbrefa.htm. For more information on SBREFA, e-mail us [email protected].

Background

History

    On January 6, 1999, the FAA published Special Federal Aviation 
Regulation (SFAR) No. 36, Development of Major Repair Data, in the 
Federal Register (64 FR 958). The rule became effective January 23, 
1999. The rule provided a 5-year extension to an earlier version of 
SFAR 36 that was set to expire in January, 1999. The SFAR allows 
authorized certificate holders (domestic repair stations, air carriers, 
air taxi operators of large aircraft, and commercial operators of large 
aircraft) to approve aircraft products and articles for return to 
service after completing major repairs. This is done using data 
developed by the holder and not directly approved by the FAA. 
Currently, 17 air carrier and domestic repair station certificate 
holders have SFAR 36 authorizations. Without an extension of SFAR 36, 
these authorizations will expire on January 23, 2004.
    Absent SFAR 36, qualified certificate holders must obtain case-by-
case approval for data they develop for major repairs. The only 
alternative to the time-consuming approval method is a formal exemption 
granting relief from this requirement. Historically, the number of such 
exemptions granted by the FAA indicated that revisions to the 
regulations were necessary. As a result, the Agency originally adopted 
SFAR 36 on January 23, 1978, as an interim rulemaking action. Adoption 
of the SFAR removed the need for petitions for exemption and gave us 
additional time to gather the information needed to develop a permanent 
rule change. However, most of the affected certificate holders did not 
use the provisions of SFAR 36 until it was well into its second year, 
nearing its original expiration date of January 23, 1980. Because we 
lacked the data necessary to create a permanent rule change, the Agency 
extended the termination date.

Related Activity

    Development of a permanent rule change was delayed in anticipation 
of a recommendation on the subject from the Aviation Rulemaking 
Advisory Committee (ARAC). On October 22, 1998, the ARAC submitted a 
proposal for permanent regulatory change. The

[[Page 65377]]

proposal described an Organization Designation Authorization (ODA) 
program that would expand and further standardize the approval 
functions of the FAA designee system. It proposed that certain 
functions and procedures, including those covered by SFAR 36, be 
terminated and covered instead by an Organization Designation 
Authorization. In 1999, we extended SFAR 36 an additional five years to 
allow for the development and implementation of the ARAC proposal.
    However, despite the progress made so far, we have delayed 
implementing the ODA delegation system. We did this to allow time to 
gain experience managing organizations under FAA Order 8100.9, DAS, 
DOA, and SFAR 36 Authorization Procedures, issued in August, 2002. The 
management principles incorporated by this Order serve as the basis for 
managing ODA holders. Even if an ODA proposal were published 
immediately, it would not be effective prior to the current expiration 
date of SFAR 36. The SFAR must be extended to continue the status quo 
and avoid significant economic and procedural disruption in returning 
to the earlier system of approvals.
    Paragraph 4 of the SFAR currently requires that the application for 
authority be filed with the appropriate FAA Flight Standards District 
Office. The more appropriate office for the applications is now the FAA 
Certificate Holding District Office. A technical amendment is made to 
the SFAR to identify the correct office for applications.

The Direct Final Rule Procedure

    The FAA anticipates that this regulation will not result in adverse 
or negative comment and therefore is issuing it as a direct final rule. 
This will be the sixth time the FAA has extended SFAR 36. When this 
rule was published as a notice of proposed rulemaking on November 2, 
1998, the FAA received no comments. Because the Agency is simply 
extending the termination date of this SFAR, and failing to do so would 
have serious adverse economic consequences for both industry and 
government, the FAA asserts that publishing a direct final rule best 
serves the public interest. Unless a written adverse or negative 
comment, or a written notice of intent to submit an adverse or negative 
comment is received within the comment period, the regulation will 
become effective on the date specified above. After the close of the 
comment period, the FAA will publish a document in the Federal Register 
indicating that no adverse or negative comments were received and 
confirming the date on which the final rule will become effective. If 
the FAA does receive, within the comment period, an adverse or negative 
comment, or written notice of intent to submit such a comment, a 
document withdrawing the direct final rule will be published in the 
Federal Register, and a notice of proposed rulemaking may be published 
with a new comment period.

Comments Invited

    The FAA invites interested persons to participate in this 
rulemaking by submitting written comments, data, or views. We also 
invite comments relating to the economic, environmental, energy, or 
federalism impacts that might result from adopting this rule. The most 
helpful comments reference a specific portion of the rule, explain the 
reason for any recommended change, and include supporting data. We ask 
that you send us two copies of written comments.
    We will file in the docket all comments we receive, as well as a 
report summarizing each substantive public contact with FAA personnel 
concerning this rulemaking. The docket is available for public 
inspection before and after the comment closing date. If you wish to 
review the docket in person, go to the address in the ADDRESSES section 
of this preamble between 9 a.m. and 5 p.m., Monday through Friday, 
except Federal holidays. You may also review the docket using the 
Internet at the web address in the ADDRESSES section.
    Privacy Act: Using the search function of our docket web site, 
anyone can find and read the comments received into any of our dockets, 
including the name of the individual sending the comment (or signing 
the comment on behalf of an association, business, labor union, etc.). 
You may review DOT's complete Privacy Act Statement in the Federal 
Register published on April 11, 2000 (65 FR 19477-78) or you may visit 
http://dms.dot.gov.
    We will consider all comments we receive on or before the closing 
date for comments. We will consider comments filed late if it is 
possible to do so without incurring expense or delay. We may change 
this rule in light of the comments we receive.
    If you want the FAA to acknowledge receipt of your comments on this 
rule, include with your comments a pre-addressed, stamped postcard on 
which the docket number appears. We will stamp the date on the postcard 
and mail it to you.

Paperwork Reduction Act

    In accordance with the Paperwork Reduction Act of 1995, 44 U.S.C. 
Sec.  3507(d), the FAA has determined that there are no new 
requirements for information collection associated with this SFAR.

International Compatibility

    In keeping with U.S. obligations under the Convention on 
International Civil Aviation, it is FAA policy to comply with 
International Civil Aviation Organization (ICAO) Standards and 
Recommended Practices to the maximum extent practicable. The FAA has 
determined that there are no ICAO Standards and Recommended Practices 
that correspond to these regulations.

Economic Assessment, Regulatory Flexibility Determination, Trade Impact 
Assessment, and Unfunded Mandates Assessment

    Proposed changes to Federal regulations must undergo several 
economic analyses. First, Executive Order 12866 directs each Federal 
agency to propose or adopt a regulation only upon a reasoned 
determination that the benefits of the intended regulation justify its 
costs. Second, the Regulatory Flexibility Act of 1980 requires agencies 
to analyze the economic impact of regulatory changes on small entities. 
Third, the Trade Agreements Act (19 U.S.C. 2531-2533) prohibits 
agencies from setting standards that create unnecessary obstacles to 
the foreign commerce of the United States. In developing U.S. 
standards, this Trade Act also requires agencies to consider 
international standards and, where appropriate, use them as the basis 
of U.S. standards. And fourth, the Unfunded Mandates Reform Act of 1995 
requires agencies to prepare a written assessment of the costs, 
benefits and other effects of proposed or final rules that include a 
Federal mandate likely to result in the expenditure by State, local or 
tribal governments, in the aggregate, or by the private sector, of $100 
million or more annually (adjusted for inflation).
    In conducting these analyses, FAA has determined this rule: (1) Has 
benefits which do justify its costs, is not a ``significant regulatory 
action'' as defined in the Executive Order and is not ``significant'' 
as defined in DOT's Regulatory Policies and Procedures; (2) will not 
have a significant impact on a substantial number of small entities; 
(3) has no impact on international trade; and, (4) does not impose an 
unfunded mandate on State, local, or tribal governments, or on the 
private sector.

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    Under the Department of Transportation Order DOT 2100.5 for 
regulations with an expected minimal impact, the above-specified 
analyses are not required. If it is determined the expected impact is 
so minimal that the proposal does not warrant a full evaluation, a 
statement to that effect and the basis for it is included in the 
proposed regulation. The FAA has determined that this rule does not 
warrant a full evaluation for the following reasons.
    This final rule extends the existing provisions of SFAR 36 for five 
years. SFAR 36 allows authorized parties to use self-developed repair 
data to return products into service and to perform major repairs 
without the direct approval of this data by the FAA. A disruption of 
this current practice is likely to result in operational delays and 
increase approval costs. Thus, the benefit of this rule is the expense 
avoided of submitting such repair data for FAA approval. Extending SFAR 
36 will not impose cost on the industry or the FAA. Because the final 
rule has positive, although not quantifiable benefits and no costs, the 
FAA has determined the benefits exceed the costs of the final rule. 
This extension of SFAR 36 will have a minimal impact, while not 
extending SFAR 36 will disrupt current business operations and raise 
approval costs both to industry and the FAA.

Regulatory Flexibility Act

    The Regulatory Flexibility Act (RFA) of 1980, 5 U.S.C. 601-612, 
directs the FAA to fit regulatory requirements to the scale of the 
business, organizations, and governmental jurisdictions subject to the 
regulation. We are required to determine whether a proposed or final 
action will have a ``significant economic impact on a substantial 
number of small entities,'' as defined in the Act. If we find that the 
action will have a significant impact, we must do a ``regulatory 
flexibility analysis.''
    This final rule extends the expiration date of SFAR 36. Its 
economic impact is minimal. Therefore, the FAA certifies that this 
action will not have a significant economic impact on a substantial 
number of small entities.

Trade Impact Assessment

    The Trade Agreement Act of 1979 prohibits Federal agencies from 
engaging in any standards or related activities that create unnecessary 
obstacles to the foreign commerce of the United States. Legitimate 
domestic objectives, such as safety, are not considered unnecessary 
obstacles. The statute also requires consideration of international 
standards and, where appropriate, that they be the basis for U.S. 
standards. The FAA has assessed the potential effect of this final 
rule, and because this rule applies only to domestic firms, there will 
be no impact on international trade.

Unfunded Mandates Assessment

    The Unfunded Mandates Reform Act of 1995 (the Act) is intended, 
among other things, to curb the practice of imposing unfunded Federal 
mandates on State, local, and tribal governments. Title II of the Act 
requires each Federal agency to prepare a written statement assessing 
the effects of any Federal mandate in a proposed or final agency rule 
that may result in a $100 million or more expenditure (adjusted 
annually for inflation).
    This final rule contains no such mandate. Therefore, the 
requirements of Title II of the Act do not apply to this regulation.

Executive Order 13132, Federalism

    The FAA has analyzed this final rule under the principles and 
criteria of Executive Order 13132, Federalism. We determined that this 
action will not have a substantial direct effect on the States, or the 
relationship between the national Government and the States, or on the 
distribution of power and responsibilities among the various levels of 
government. Therefore, we determined that this final rule does not have 
federalism implications.

Environmental Analysis

    FAA Order 1050.1D defines FAA actions that may be categorically 
excluded from preparation of a National Environmental Policy Act (NEPA) 
environmental impact statement. In accordance with FAA Order 1050.1D, 
appendix 4, paragraph 4(j), this rulemaking action qualifies for a 
categorical exclusion.

List of Subjects

14 CFR Part 121

    Air carriers, Airworthiness directives and standards, Aviation 
safety, Safety.

14 CFR Part 135

    Air carriers, Air taxis, Air transportation, Aircraft, Airmen, 
Airplanes, Airworthiness, Aviation safety, Helicopters, Safety.

14 CFR Part 145

    Air carriers, Air transportation, Aircraft, Aviation safety, 
Safety.

The Amendment

0
In consideration of the foregoing, the Federal Aviation Administration 
amends Chapter I of Title 14 of the Code of Federal Regulations parts 
121, 135, and 145 as follows:

PART 121--OPERATING REQUIREMENTS: DOMESTIC, FLAG, AND SUPPLEMENTAL 
OPERATIONS

0
1. The authority citation for part 121 continues to read as follows:

    Authority: 49 U.S.C. 106(g), 40113, 40119, 41706, 44101, 44701-
44702, 44705, 44709-44711, 44713, 44716-44717, 44722, 46105.

PART 135--OPERATING REQUIREMENTS: COMMUTER AND ON-DEMAND OPERATIONS

0
2. The authority citation for part 135 continues to read as follows:

    Authority: 49 U.S.C. 106(g), 41706, 44113, 44701-44702, 44705, 
44709, 44711-44713, 44715-44717, 44722.

PART 145--REPAIR STATIONS

0
3. The authority citation for part 145 continues to read as follows:

    Authority: 49 U.S.C. 106(g), 40113, 44701-44702, 44707, 44717.


0
4. Special Federal Aviation Regulation No. 36 is amended by revising 
paragraph 3(a)(1), paragraph 4 introductory text, paragraph 7 
introductory text, and the termination date to read as follows:

SPECIAL FEDERAL AVIATION REGULATION No. 36

* * * * *
    3. * * *
    (a) * * *
    (1) Has been issued an authorization under, and a procedures manual 
that complies with, Special Federal Aviation Regulation No. 36-8, 
effective on January 23, 2004;
* * * * *
    4. Application. The applicant for an authorization under this 
Special Federal Aviation Regulation must submit an application, in 
writing, and signed by an officer of the applicant, to the FAA 
Certificate Holding District Office charged with the overall inspection 
of the applicant's operations under its certificate. The application 
must contain--
* * * * *

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    1. Duration of Authorization. Each authorization issued under this 
Special Federal Aviation Regulation is effective from the date of 
issuance until January 23, 2009, unless it is earlier surrendered, 
suspended, revoked, or otherwise terminated. Upon termination of such 
authorization, the terminated authorization holder must:
* * * * *
    This Special Federal Aviation Regulation terminates January 23, 
2009.

    Issued in Washington, DC, on November 13, 2003.
Marion C. Blakey,
Administrator.
[FR Doc. 03-28888 Filed 11-18-03; 8:45 am]
BILLING CODE 4910-13-P